Naira Gains N10 to Trade N1,640/$1 at Parallel Market

Business Post reports that the domestic currency appreciated against the greenback during the session by N10 to settle at N1,640/$1 compared with the preceding session’s value of N1,650/$1.

The official market was closed yesterday due to the public holiday declared by the federal government to celebrate Christmas.

However, the black market was operational, and trading activities went smoothly.

The local currency firmed up on Thursday due to a decline in customer demand for forex. The country has continued to witness FX inflows from Nigerians in the diaspora, who returned to celebrate the period with their loved ones.

A few of the FX traders on the streets of Lagos informed this reporter that the demand for forex has significantly slowed because of the inflows, but expect a sharp rise from next month when most of the people will return to base.

“Market is a bit dull and it is understandable. We expect things to pick up from next week or so when most of those who returned from abroad are returning.

“Don’t also forget that new travellers will need forex. This is when we will know if the new system of the Central Bank of Nigeria (CBN) is effective,” one of the FX traders in Lagos, who asked not to be named, told this newspaper.

Recall that early this month, the central bank launched the Electronic Foreign Exchange Matching System (EFEMS) for forex trading at the official market known as the Nigerian Autonomous Forex Exchange Market (NAFEM).

This platform was created for transparency in the forex market, with a minimum trade value of $100,000 for interbank foreign exchange trading.

A few days ago, the CBN granted Bureaux de Change (BDC) operators temporary access to the official market as part of efforts to further strengthen the Naira in the currency market.

The CBN in a notice on Friday said BDC operators would have access to FX at the official market from December 19, 2024, to January 30, 2025, with a weekly cap of $25,000.